Pacaso investment opportunity

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Frequently asked questions

What is Reg A?

Regulation A (Reg A) is an SEC capital raising regulation allowing companies to publicly offer securities and diversify their investor base without the complexities of a traditional IPO. It democratizes investment by enabling the public to invest in growth-stage companies like Pacaso.

What is the offering?

We are offering shares of common stock in Pacaso Inc. through Regulation A. Through this offering, investors can support our growth and expansion initiatives, while sharing in any future business success that the company may have as equity stakeholders.

What exactly am I purchasing?

You are purchasing shares directly in Pacaso Inc. and acquiring Class D Common Stock, which places you alongside our other forward-thinking investors on our equity table and carries the potential for significant returns as Pacaso grows.

How will you use the funds raised?

This shareholder offering supports our expansion into new destinations and strengthens our product, engineering and home operations. The investment opportunity aligns with our mission to democratize real estate enabling more people to invest in our growth and get equity in Pacaso.

Why is Pacaso doing this now?

Given market shifts and tighter capital availability, now is an ideal time for investors to invest at a favorable valuation and support Pacaso's growth. This funding will help us continue to expand and provide more homes in more locations, supporting company growth.

What are the benefits of investing in Reg A?

Before Reg A, only elite venture capital firms had access to the Pacaso stock. This is a limited time opportunity for any aspiring investor to purchase stock with low minimums and a favorable valuation.

Who is eligible to participate? Do I need to be an accredited investor?

Accredited and non-accredited investors are invited to participate in this investment opportunity.

Is there a maximum or minimum investment?

The minimum investment is $1,000, with no maximum.

What are the tax implications?

Pacaso cannot provide specific tax or investment advice, and you may want to consult with a tax advisor regarding this investment. Generally speaking, equity investors are required to report income on their tax return if they have realized a gain or loss on their investment. Typically, if you sell a capital asset and you realize a gain on that investment, the capital gain is taxable. If you sell a capital asset at a loss, that loss may qualify as a capital loss and can be used to offset capital gains.

What is the state of the market?

Persistently high interest rates and low inventory have continued to challenge housing affordability for potential buyers. Co-ownership has surged by over 20% year-over-year, enhancing access to homeownership. With recent rate cuts further boosting market conditions, strong demand signals indicate that buyers are eager to enter the market despite these ongoing challenges — and Pacaso is positioned to meet this demand.

What is the latest with Pacaso’s business?

Over the past three years, Pacaso has achieved around $100 million in adjusted gross profit and transacted nearly $1 billion in gross real estate value and associated service fees across more than 40 markets nationwide and internationally, including Paris, London and Cabo San Lucas.

Government-required identity & anti-fraud checks secure all transactions. Why Do We Need This?

 

Since this is a financial transaction we are required by regulators like the SEC & US Department of Treasury to perform AML (Anti Money Laundering) & KYC (Know Your Customer) verification in order to avoid money laundering, fraud, and identity theft. 

 

Our broker-dealer, DealMaker Securities, LLC uses a Taxpayer Identification Number (TIN), for example Social Security Number (SSN), Employment Identification Number (EIN), Individual Tax Identification Number (ITIN) to fulfill its responsibilities with its Anti-Money Laundering (AML) Program as required by the Bank Secrecy Act (BSA) and its implementing regulations and FINRA Rule 3310 (AML Compliance Program) by requesting, reviewing, and verifying data and documentation provided during securities transactions, prior to acceptance. 

 

Here’s why they are required for startup investments:

 

1.

Preventing Illegal Activities: Money laundering involves the concealment or disguise of money derived from criminal origins by processing it through a single or series of transactions to make it appear as if it comes from a legal, legitimate source or constitute legitimate assets. Having a verification process, whereby investors are reviewed, checked against governmental databases, and all investment funds are evaluated, startups can feel confident they are protecting themselves from civil and criminal penalties and preventing terrorist financing, drug trafficking, tax evasion, corruption, fraud, and other financial crimes.

 

2.

Identity Verification/Data: KYC processes help collect essential pieces of data and verify the identity and authority of the investors, ensuring that they are indeed who they claim to be and are authorized to process the transaction they seek to make. This protects against identity theft and fraud.

 

3.

Regulatory Compliance: Compliance with AML and KYC requirements is mandatory in many jurisdictions. Failure to comply can lead to severe civil penalties, including heavy fines, and even criminal penalties.